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Posted by Jim IL on March 17, 1999 at 22:13:27:

Hello all,
I have been trying to get another "flip" deal done. My goal was to have 2 done by 30 days after the convention. But, as usual, the "confidence thing" is creeping up again.
I sent out MANY offers over the last few days, and as expected, most were rejected or countered too high. ( The numbers game) But, we got two responses back today that look promising. One is a go, but not to flip. We will be working out some "Creative" way to buy the home and help the seller get into another home.
The other deal, (That is the question, is this a deal?), looks like this:
Home ARV: $55k
Repairs: $10k
My offer: $23k
They counter at $29k
I know they will accept $27k, but is that enough of a decent spread for me to flip it?

For some reason, I am second guessing myself.
This always happens at night too.
Anyway,
Any advice, or re-assurance is greatly appreciated.
Thanks again folks,
Jim IL

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Posted by Jim IL on March 17, 1999 at 22:59:56:

I'm just gonna tie this up and give it a run. If it won't go, then we simply use the "Clauses" for "Weaseling" out. That is why they are there, right?

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Posted by Jason-DTX on March 17, 1999 at 23:06:49:

Most retailers would not want to pay more than around $28k based on your numbers. $27K only leaves you $1k or more if you find a chump. I would try to get it around $25 or less.
Good Luck
Jason

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Posted by Marvin on March 17, 1999 at 23:17:52:

Hi Jim,

In my opinion:

1) There are a number of valid reasons for
escaping from a contratual agreement, but
"I think I made a mistake when I calculated
my profit" (oops) may not be one of those
valid reasons.

2) You MAY counter at $23,000.

Marvin

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Posted by Laure on March 18, 1999 at 03:57:16:

I would do the deal. Then, find a qualified buyer who can purchase retail with bank funding. This isn't always easy though. I am finding tons of people with "glitches" that can't get funded without a year seasoning. The upside of waiting is that you get a higher price for your property. Absolutely NO ONE is ****ering on price when they can't get traditional funding. The price is totally mine to set! I expected people to make me "offers" etc., but, in fact, they are saying, "If I give you 5k down, will you contract it for a year? and what are my payments?" Buyers are concerned with PAYMENTS ... not price. If you can get the appraisal on the house, sell it for 63,000 instead of 55,000. They will LOVE you for letting them into a home.

Get LeGrand's tapes on private lenders, that will allow you to sell on contract or L/O the property for the year and still allow you to invest "your" money into another deal.

Also, I have found concerning my "feelings".... Ask yourself three questions: Am I hungry? Am I tired? ooops, can't post the third one, a bit "off color"
But If I answer "yes" to any of these, then I tell myself my feelings are invalid tonight. Re think this tomorrow when I am not: Hungry, H... , or tired.

Good Luck !

Laure :-)

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Posted by LHoffman on March 18, 1999 at 09:36:40:

Hey Jim, the numbers look pretty good to me. One thing I would do is adjust the price based on your assignment price. For example you have $28,000.00 as you maximum offer. I think a $2500.00 would be nice to get. So I would make an offer of $25,500.00.

This way when you flip it to another investor they will still be getting an pretty good deal.

-LHoffman

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Posted by rayrick on March 18, 1999 at 13:10:09:

I couldn't agree more with your "feelings" comment. I almost invariably find that it's when I'm exhausted that I find myself having one of those Stewart Smalley crises ("I'm a fraud...They're going to cancel the show...")
I have learned to do exactly as you said, that is recognize I'm exhausted and just discount the negativity. Invariably I feel much better the next day.

-Ray

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Posted by Sandy FL on March 18, 1999 at 14:11:51:

ROFLMAO ... You guys kill me! I know those Stuart
Smalley evil thoughts .. everybody has 'em ... but I
don't notice they are at any particular time of day :)
And certainly not every day .. in fact, not ONCE since
convention ... LOL! This business is like crack and
prozac (and female Viagra, in Laure's case... ) wrapped
up in one. I can't get enough! (of real estate)

Just keep remembering, "I'm good enough, I'm smart
enough, and Doggone it, People like me!" LOL


Sandy

private p.s. Jeez, Snitch, do you ever give up??
I am beginning to worry for your spouse, LOL